APY (annual percentage yield)

What a savings account really earns in a year, including interest earned on interest.

APY is the yearly return on savings once compounding is counted. Because interest is added to your balance and then earns interest itself, APY is a little higher than the plain interest rate when interest compounds more than once a year.

APY is for money you earn; APR is for money you owe. When comparing savings accounts, compare APYs.